MS&Consulting Co.,Ltd. (6555) AI Stock Analysis

• Market Cap: ¥1.86B
• Dividend Yield: N/A
• Average Volume (3M): 4.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: 8.27%
• EPS Growth: -295.89%
• Country: JP
• Employees: 145
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 22.88
• Shares Outstanding: 4,597,400
• 10 Day Avg. Volume: 7,060
• 30 Day Avg. Volume: 4,180
• PEG Ratio: 0.02
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 4.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥380.00 ▼(-7.54% Downside)

The stock's overall score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical analysis indicates a bearish trend, further weighing down the score. Valuation concerns, such as a negative P/E ratio, also contribute to the low score.

Positive Factors

Revenue Growth

Despite challenges, a positive revenue growth rate indicates the company's ability to expand its client base and service offerings, which is crucial for long-term sustainability.

Strong Balance Sheet

A low debt-to-equity ratio suggests conservative leverage, providing financial stability and flexibility to invest in growth opportunities.

Cash Conversion Efficiency

A strong cash conversion ratio indicates effective management of cash resources, which supports operational needs and strategic investments.

Negative Factors

Profitability Challenges

Negative profit margins highlight ongoing profitability issues, which can hinder the company's ability to reinvest in business growth and innovation.

Declining Cash Flow

Declining cash flow growth can strain the company's ability to fund operations and strategic initiatives, impacting long-term financial health.

Operational Inefficiencies

Negative EBIT and EBITDA margins indicate inefficiencies in operations, which can affect competitiveness and profitability over time.

MS&Consulting Co.,Ltd. Business Overview & Revenue Model

Company Description

MS&Consulting Co., Ltd. (6555) is a consulting firm that specializes in providing strategic advisory services across various sectors, including finance, technology, and operations management. The company offers a comprehensive range of services, including business strategy development, project management, and operational efficiency improvement. By leveraging industry expertise and analytical tools, MS&Consulting aims to help clients navigate complex challenges and enhance their competitive positioning in the market.

How the Company Makes Money

MS&Consulting generates revenue primarily through its consulting services, which are billed on a project basis or via retainer agreements with clients. Key revenue streams include fees for strategic advisory services, project management, and operational consulting. The company also benefits from long-term partnerships with corporate clients and government agencies, which provide a steady stream of income. Additionally, MS&Consulting may engage in training and workshops, offering specialized programs that further contribute to its earnings.

MS&Consulting Co.,Ltd. Financial Statement Overview

Summary

The company faces challenges with profitability and cash flow generation, as evidenced by negative net profit margins and declining free cash flow growth. However, it maintains a strong balance sheet with low leverage, providing a stable financial foundation.

Income Statement

The company shows a modest revenue growth rate of 2.72% TTM, indicating some positive momentum. However, the net profit margin is negative at -10.88%, reflecting ongoing profitability challenges. The gross profit margin has decreased over time, and the EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.08 TTM, indicating conservative leverage. However, the return on equity is negative at -9.97%, highlighting profitability issues. The equity ratio is stable, suggesting a solid capital structure despite the negative ROE.

Cash Flow

The free cash flow growth rate is negative at -12.38% TTM, indicating declining cash generation. The operating cash flow to net income ratio is 0.52, showing moderate cash flow efficiency. The free cash flow to net income ratio is relatively strong at 0.83, suggesting decent cash conversion despite the negative free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.69B	2.55B	2.39B	2.21B	1.93B	1.31B
Gross Profit	907.03M	800.73M	800.17M	884.74M	754.75M	222.93M
EBITDA	-5.82M	-131.00M	267.33M	407.27M	387.51M	-228.97M
Net Income	-201.87M	-276.10M	114.37M	219.69M	206.51M	-244.55M
Balance Sheet
Total Assets	3.50B	3.38B	3.55B	3.73B	3.90B	3.85B
Cash, Cash Equivalents and Short-Term Investments	731.00M	578.93M	330.20M	666.15M	1.07B	873.64M
Total Debt	189.00M	241.18M	186.49M	129.06M	268.15M	473.76M
Total Liabilities	794.00M	826.40M	723.99M	770.40M	1.03B	1.13B
Stockholders Equity	2.74B	2.59B	2.86B	2.99B	2.89B	2.75B
Cash Flow
Free Cash Flow	371.23M	400.90M	-142.42M	-65.33M	464.57M	160.37M
Operating Cash Flow	373.23M	406.81M	13.11M	6.42M	516.72M	207.57M
Investing Cash Flow	-122.69M	-130.13M	-176.53M	-71.75M	-47.70M	-46.32M
Financing Cash Flow	-45.88M	-30.38M	-173.09M	-342.15M	-268.66M	180.62M

MS&Consulting Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 411.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6555, the sentiment is Positive. The current price of 411 is below the 20-day moving average (MA) of 412.60, above the 50-day MA of 402.84, and above the 200-day MA of 405.71, indicating a neutral trend. The MACD of 4.14 indicates Positive momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6555.

MS&Consulting Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6193	70 Outperform	¥2.93B	13.25	―	1.50%	4.73%	135.75%
3670	65 Neutral	¥2.33B	8.17	―	2.82%	-9.03%	53.70%
9250	63 Neutral	¥1.28B	20.68	―	―	5.17%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3908	60 Neutral	¥1.37B	9.64	―	―	-10.98%	―
9240	51 Neutral	¥2.49B	27.54	―	―	6.61%	12.06%
6555	46 Neutral	¥1.86B	-8.11	―	―	8.27%	-295.89%